Debswana ahead on Jwaneng underground despite cash crunch
Lewanika Timothy - Mbongeni Mguni | Monday June 23, 2025 12:17
When complete, the Jwaneng Underground Project, popularly known as the JUP, will create the world’s largest underground diamond operation, involving 360 kilometres of tunnels.
Starting in 2034 and going up to at least 2054, the project will bring up nine million carats to the surface annually, anchoring Debswana and the government’s revenues at a critical time when the country’s diamond resources are tapering out.
Speaking on Monday at the Future of Mining Summit, De Beers executive vice-president, Diamond Trading, Paul Rowley, said solid progress was being made on the massive project.
“The JUP is ahead of plan and as at June 1, the decline had reached 2,262 metres or 14% ahead of plan,” he said.
Following the Cut 8 expansion, Jwaneng was already one of the world’s largest open-cast diamond mines at about 625 metres deep and after the Cut 9, the pit has reached down to more than 800 metres. Production from Cut 9 will last until 2033 at which point ore from the underground project should be ready to take over and continue mining activities until at least 2054.
Debswana managing director, Andrew Motsomi, revealed that whilst traditionally the mining giant funds its capital projects from its internal revenues, the diamond downturn meant it would have to turn to external debt.
“Debswana is working with a local commercial bank to get a credit rating in order to raise capital for the JUP,” he said. “When we were cash rich, we could fund projects but now we have to start looking at other funding sources.” Due primarily to the JUP, Debswana expects escalating capital requirements going forward, with an estimate that these will increase from an average of P5 billion per annum in the past five years, to P8 billion over the next five-year period. Whilst the costs have risen, revenues from Debswana have been under pressure since the current downturn began in late 2023. In previous times, De Beers has stepped in to fund the bulk of Debswana capital projects, with government playing a supporting role, often through arrangements between the two shareholders.
With the deferral of the Cut 3 expansion at Orapa Mine, the JUP has become the nation’s single most important project.
Motsomi said the JUP was critical to Debswana and by extension, the nation, going forward.
“We are delivering the JUP to make sure we can sustain or secure long-term revenue as and when Cut 9 concludes,” he said at the summit. “The project started in May last year and a lot of progress has been made with tight timelines to avoid a revenue gap in the transition from open cast to underground.”
The diamond miner has also been forced to trim down on its spending across the its operations in order to cope with the prolonged diamond slump.